Do not give image format The Fitzgerald Company maintains a checking account at the Bank of the North. The bank provides a bank statement along withcanceled checks on the last day of each month. The October 31, 2021, bank statement included the following information:Balance, October 1, 2021DepositsChecks processedService chargesNSF checksMonthly loan payment deducteddirectly by bank from account(includes $400 in interest)Balance, October 31, 2021$ 32,69086,000(75,200)(350)(1,600)(3,400)$ 38,140The company's general ledger cash (checking) account had a balance of $42,544 at the end of October. Deposits outstanding totaled$4,224, and all checks written by the company were processed by the bank except for those totaling $5,620. In addition, a check for$500 for the purchase of office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctlyprocessed the check during October.Required:1. Prepare a bank reconciliation for the month of October.2. Prepare the necessary journal entries at the end of October to adjust the general ledger cash account. Prepare a bank reconciliation for the month of October.Fitzgerald Company's Bank ReconciliationBalance per bank statementAdd:Deduct:Corrected cash balanceBalance per booksDeduct:Corrected cash balanceShow Transcribed TextJournal entry worksheet<12Record the correction of error in cash disbursement.Note: Enter debits before credits.Transaction1General JournalDebitCrec

Disparities between the amount indicated in the account holder's records and the cash balance…

Answered: at the Bank of bank p ne Fitzgerald…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter5: Bank Reconciliation (bankrec)

Section: Chapter Questions

Problem 3R

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.

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